Adani Group is planning to demerge its airport business by the financial year 2027-28, according to Robbie Singh, Group Chief Financial Officer (CFO) of Adani Group, as reported by TOI. This announcement was made during a recent media interaction related to Adani Enterprises Limited (AEL)’s first public issuance of secured, rated, listed redeemable non-convertible debentures (NCDs).
AEL, the flagship company of the ports-to-power conglomerate, aims to raise Rs 400 crore with the option for an additional Rs 400 crore through oversubscription, potentially totaling Rs 800 crore.
The public issue of NCDs, valued at Rs 1,000 each, will open on September 4 and close on September 17. The NCDs will be listed and traded in dematerialised form on both BSE and NSE, providing an effective yield of up to 9.90% per annum. The funds will be primarily used to prepay or repay existing borrowings.
Robbie Singh outlined the criteria for the demerger of the airport business.
“First, the business must be fully capable of supporting itself financially. Second, it must have the organisational capability to operate independently at both the board and management levels. Finally, it must demonstrate the ability to consistently invest at a rate that supports its growth,” he said.
Singh mentioned that the airport business is expected to meet these conditions within the next few years.
“As we indicated in our previous annual results, we anticipate that the airport business will be the first to be ready for de-merger. We remain on track to execute this by 2027-28,” he confirmed in an interview with TOI.
The NCDs will be segmented into 24-month, 36-month, and 60-month terms, with quarterly, cumulative, and annual interest payment options available across the eight series. The allotment to investors will be on a first-come, first-served basis.
This move is a part of Adani Group’s strategic plan to streamline and strengthen its business operations, ensuring that each segment can independently sustain and drive growth.
Source: Economic Times